32,041 Bitcoins Bought by Genesis to Settle Creditor Debts
Highlights
- Genesis Global Capital successfully sold its Grayscale Bitcoin Trust shares, converting them into 32,041 Bitcoins to repay customers and creditors.
- The liquidation of approximately 36 million GBTC shares was confirmed by Genesis's legal team in a court filing.
- Genesis aims to distribute the acquired Bitcoin to its Gemini Earn creditors following a $21 million SEC settlement over unregistered securities allegations.
Genesis Global Capital declared a profitable sale of its shares of Grayscale Bitcoin Trust (GBTC). The bankrupt cryptocurrency lending company converted the money to buy 32,041 Bitcoins. This gesture is intended to compensate the company’s customers and creditors. The liquidation process included approximately 36 million GBTC shares. Genesis’s legal team confirmed the completion of this process in a recent court filing.
The New York bankruptcy court had already given Genesis consent to dispose of its Grayscale shares, which comprised almost 36 million in GBTC and other stakes in Grayscale Ethereum trusts. Upon application, the estate’s lawyers valued the property in Grayscale stocks at around $1.6 billion. The Bitcoin acquired by this sale is yet to be worth almost $2.2 billion at the present market price.
Genesis Settles SEC Dispute with $21 Million Payment
Bitcoin Genesis has released its first plan for the large stack it holds. Its key purpose is to allocate the tokens to its Gemini Earn debtors. This refund plan is a result of Genesis’s $21 million settlement with the SEC, in which Genesis was accused of offering and selling unregistered securities through the Gemini Earn program. Settlement is a process of addressing the company’s regulatory issues and obtaining the creditor’s repayment.
The money obtained from the sales of GBTC shares is an indicator of Genesis’s dedication to meeting its financial obligations. The current worth of the bought Bitcoin shows the capacity for creditor recovery. This attempt is one of Geneis’s approaches to working its way through the company’s bankruptcy proceedings and meeting commitments to its customers.
DCG Seeks Dismissal of New York AG Lawsuit
Last month, Digital Currency Group (DCG) attempted to have a lawsuit brought by New York Attorney General Letitia James dismissed. In the lawsuit, DCG and its CEO, Barry Silbert, are alleged to have committed investor fraud and mismanagement. These accusations concern Genesis’s actions and its link with the Gemini crypto exchange company. The legal fight underlines the perpetuating examination of the digital asset sphere and the need for lucid regulations.
The DCG’s motion to the New York Supreme Court is designed to refute the charges of fraud. The lawsuit filed in October accuses DGC and Silbert of causing over $1 billion in investor losses. The largest part of these losses is related to the Gemini Earn program, which ceased in 2022, along with the general crypto market decline. The legal challenge by DCG forms part of the broader discussion on the regulation of digital assets and market stability.
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